Truck spot rates on the decline

Thursday, July 18, 2013

Trucking spot market rates declined across the board from the first week of July even as fuel prices rose 1 percent, according to DAT.
Flatbed spot rates fell by 3.1 percent, reefer rates were down 2.2 percent, and van rates declined 2.1 percent during the week of July 7 to July 13. The week-over-week decreases come after a month where spot rates increased. In June, reefer rates rose 6.1 percent compared to May's results. Van rates were up 2.7 percent, and flatbed rates increased 1.4 percent. Compared to last June, however, rates stayed fairly flat, with a 6.5-percent decrease in flatbed rates as the only real movement.
Regionally, van rates for mid-July ranged from an average of $1.61 in Philadelphia to $2.25 in Los Angeles. The national average rate is $1.89, and this represents the start of a seasonal decline, which is beginning 10 days later than DAT had predicted. For flatbed, the national average rate finished the week at $2.16, a loss of 3 cents per mile in major markets. According to DAT, it is expected that flatbed rates will decline following the end of the second quarter. Reefer moves commanded an average rate of $2.25.
"Reefer rates rose in key California markets, as well as Idaho and Utah, but continued to decline in Florida, Southern Texas and Arizona. Most rate movements were tied to fruit and vegetable harvests," DAT said.
During the second week of July, spot market capacity rose by 19 percent. - Jon Ross